The Federal Reserve Diet
If Barack Obama proceeds with plans to give the US Federal Reserve more regulatory power, pressure for greater public accountability will persist. To protect the Fed’s independence, which is a global public good of the highest importance, he should cut back the Fed's authority to its core monetary-policy role.
https://prosyn.org/uEK2WP1
LONDON – Markets around the world were relieved by the US Senate’s confirmation of Federal Reserve Board Chairman Ben Bernanke’s reappointment. It was the right decision from the perspective of financial stability; change at the top would have thrown in doubt the Fed’s determination to respond decisively to the crisis – and, indeed, its long-term commitment to low inflation.